| 15.1 |
Duty to Explain Contract |
Before entering into a Building Contract with a housing consumer, a home-builder has a duty to explain the Building Contract to the housing consumer. In particular, the home builder must :
| a) |
explain the meaning and consequence of material clauses and; |
| b) |
if required, allow the housing consumer to consult an advisor |
| 15.2 |
Copy of the contracts |
Upon the conclusion of a Building Contract or Sale agreement, the home-builder must give the housing consumer a copy of the signed contract.
The home-builder must comply with all the obligations under a Building Contract he enters into.
| 15.4 |
Claims regarding accreditation |
If a home builder makes claims regarding his/her accreditation by an organisation or body, he/she shall attach the relevant certificate of approval to any contract relating to the home.
| 15.5 |
Requirements for signing a Building Contract |
A home builder must ensure that the following requirements are met before allowing a housing consumer to sign a Building Contract or Sale agreement:
| a) |
all the terms agreed upon between the home-builder and the housing consumer are in the contract; |
| b) |
all terms reflect the intentions of the housing consumer and the home builder: |
| c) |
all terms not applicable have been deleted; |
| d) |
that the building contract contains the provisions referred to in Section 13 of the Act, 1998 (Act No. 95 of 1998). |
| 15.6 |
Changes to Building Contracts |
|
The home builder may not delete or change any clause of the Building Contract after signature by the parties unless the housing consumer agrees to and signs for the changes. |
| 15.7 |
Undue pressure to sign |
A home builder may not induce or persuade a housing consumer to sign a building contract by means of duress, misrepresentation, or by performing any act or making any statement which would constitute undue influence; provided that this clause shall not prevent the home builder from utilizing marketing and selling techniques which are commonly accepted and followed in the property development industry.
| 15.8 |
Provisions in a contract |
| 1) |
A Building Contract shall contain the following terms and conditions: |
| a) |
the name of the home builder and the housing consumer; |
| b) |
the contract price; (or in the case of a cost plus building contract the percentage or amounts the housing consumer shall pay as the home builder's fee); |
| c) |
the amount of any deposit or advance monies; |
| d) |
when, where and how much, the housing consumer must pay; |
| e) |
the estimated date by which the home builder must begin building the home, together with a provision specifying that the housing consumer may resile from the contract if building does not commence within an agreed time from such estimated date, unless the parties have agreed in writing to the extension of such date; |
| f) |
the estimated date by which (or the period within which) the home will be completed, together with a provision specifying that the housing consumer may resile from the contract if building does not commence within an agreed time from such estimated date, unless the parties have agreed in writing to the extension of such date; |
| g) |
A description of the land on which the home is to be built, and the size thereof; |
| h) |
in a case where a contract is for building a unit as defined in the Sectional Title Act, 1986 (Act, 1986), the latest date by which the unit will be registered in the housing consumer's name; |
| i) |
confirmation that the home builder is or will be registered with the NHBRC prior to the registration of transfer of the land or sectional title unit in the deeds office or prior to the commencement of the building works in terms of the building contract. |
| 2) |
Where there is a contradiction between the abovementioned provisions and those contained in Section 6 of the Alienation of Land Act 68 of 1981, the Alienation of Land Act 68 of 1981 shall prevail. |
Public Service Commission Act, 1997
